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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: KevinMark who wrote (116513)	11/10/2000 11:34:09 AM
From: Jenna	Respond to of 120523

<font color=teal>CHECK support and resistance levels and not just buy because the stock is 'quite a bit down'.. We had ELNT on our watch list for today, but it was very carefully explained what you might expect. Not a clear cut buy or sell or chasing. 4>ELNT - Elantec Semiconductor Inc. Price = 86.88 ELNT still has a fairly uptrending chart as it trading between a rising 50 and 100 day moving average. ELNT's 20 day moving average is also sloping upwards another bullish indication. It has not dropped below its 100 day moving average (now at 82) since June. Usually the 50 day moving average provided a major support level from which ELNT bounced very strongly on at least 5 occasions since June. It if bounces here, off the 100 day, upside can be substantial.. *The only caveat here is that it if might drop below 82 in a final exhaustion move to the downside.* If ELNT continues to drop below 82, than 80 would be another support level. So either you short any drop below 85, or just wait until ELNT stabilizes after a possible morning gap down and continuing move down (possibly to 80) and BUY as it reverses its downtrend and heads back to 85 and above. <ELNT did not move back up once it hit 80, it continuing down destroying any vestige of saving grace of its 100 day moving average> A trader sees ELNT and figures, well how low can it go? It looks like it might bottom at 85, no than at 80 maybe? NO.. now about 75... Maybe.. the IRONY of this is that the more support ELNT takes out without recovering the more chance ELNT goes into freefall at least for today. Supply is overwhelming and demand is nil. So instead of a bottoming, you have 'the bottom dropping out'...